State of the Beef Industry

47% of Beef Producers Plan to Increase Herd Numbers

Mon, 15 Sep 2025 19:31:25 GMT

Takeaways from the 2025 State of Beef Industry survey reflect the industry is currently thriving financially but facing long-term structural challenges around herd rebuilding, succession planning and maintaining competitiveness through innovation and efficiency improvements.

Despite the challenges, optimism is rising: 47% plan herd growth, and two-thirds report profitability. Survey results summarize producers believe long-term success will depend on adaptability and innovation.

In its third year, Farm Journal’s State of the Beef Industry 2025 Survey, provides a comprehensive overview of the current status and outlook of the beef industry. The report surveyed 469 beef producers from across the U.S., focusing on those with cow herds that exceed 50 pairs or more than 500 on feed.

The year-over-year comparisons are starting to tell a story about what’s going on in the industry and the shifts producers are experiencing. Here are some key takeaways:

Two-thirds of producers have added new revenue streams like selling direct to consumer, developing a recipient herd, custom calving or hunting, which helps offset the risk of volatile markets.
Comparing the 2023 and 2024 surveys, the number of respondents who precondition calves before marketing has been consistent — 83% in 2025, 79% in 2024 and 82% in 2023.
Of the survey participants, 84% selected genetics and performance information as a consideration when buying bulls. Other top factors included disposition (79%) and phenotype or appearance (79%). Source came in at 56% and value 54%.

The State of the Beef Industry Report provides information to help producers when making decisions. Click here to download the full report.

Your Next Read: Are We Seeing Signs of Herd Rebuilding?

Are We Seeing Signs of Herd Rebuilding?

Fri, 12 Sep 2025 19:50:44 GMT

The U.S. beef cow inventory has reached its lowest point since 1962, marking what appears to be the bottom of the current cattle cycle. Tight supply is driving the strong pricing environment beef producers are enjoying today.

“For cow-calf producers right now, things are as good as they’ve probably ever been,” says Troy Rowan, University of Tennessee assistant professor. “Even though things are really good, producers are conscientious and vigilant about potential challenges,” Rowan summarizes.

Agreeing with Rowan, South Dakota cattleman Ken Odde adds while profits are currently strong, inflation quickly erodes economic gains. He stresses the importance of risk management and diversification.

Early Signs of Herd Rebuilding?

This is the million-dollar question: Are there encouraging signs of expansion?

“The beef industry is not currently in herd expansion mode, with producers hesitant to retain heifers due to high costs and economic uncertainties,” says Dave Weaber, Terrain senior animal protein analyst.

In Drovers State of Industry Report to be released the week of Sept. 15, we breakdown the July USDA cattle inventory and cattle on feed reports. While the USDA reports showed the smallest U.S. herd in history and continuing tightening numbers on feed, analysts predict producers have not experienced the highest cattle prices, yet.

“Our national herd size has the industry at an interesting point,” Rowan says. “Prices are at all-time highs, inputs are reasonable and more cow-calf enterprises are profitable than ever. When the industrywide rebuild will happen remains up in the air, but producers are keeping in mind that the high-flying industry right now is not going to stick around forever. They’re starting to adopt new technologies, leveling up their crossbreeding programs and expand opportunities for non-cattle related income on their ranches.”

Weaber adds producers need to be intentional about herd expansion, understanding the financial implications of adding new cattle.

Beef-on-Dairy Fills the Beef Supply Gap

“The current dynamics of supply is going to be a challenge,” says Jarrod Gillig, Cargill senior vice president, managing director for beef.

Gillig summarizes the cattle industry is experiencing a critical period of transition. He doesn’t expect the cow herd to return to previous peak levels of 32 million head. Instead, he predicts the gap in supply will be filled by beef-on-dairy calves.

Nick Hardcastle, Cargill senior director of meat grading and technical specialist, explains how the beef-on-dairy calves are an upgrade to the traditional Holstein steer and the positive impact they are making on beef supply.

“Beef-on-dairy is more desirable because it helped overcome several Holstein difficulties,” he says. “Improvements include red meat yield — more meat to a consumer — as well as improved acceptance in branded programs.”

Hardcastle says the beef-on-dairy cattle are filling the supply gap by filling pens in the Plains states where feeders are needed, and they are widely accepted by feeders and packers.

Defining Future Beef Producer Success

Odde says the beef industry is not just surviving but positioning itself for significant transformation.

“Producers who remain flexible, technologically savvy and strategic in their approach will be best positioned to thrive in this changing environment,” he says.

Weaber agrees saying successful producers will be those who can adapt, manage costs effectively and align themselves with evolving market trends.

“Don’t let cost get away from you,” Weaber warns, emphasizing that “being a low-cost, high-productivity producer means you get to make money seven, eight or nine years of the cycle.”

He stresses the importance of understanding financial implications, particularly during market transitions.

“If we’re not working on the business, we can’t work in the business,” Weaber adds, summarizing his philosophy regarding producers’ need to adopt more strategic, data-driven approaches.

The State of the Beef Industry Report includes input from nearly 500 beef producers. The annual report provides information to help producers when making decisions. Click here to download the full report.

Your Next Read: 47% of Beef Producers Plan to Increase Herd Numbers

Are Cattle Producers Rebuilding Their Herds Now?

Wed, 25 Sep 2024 16:08:56 GMT

Editor’s Note: This article is part of the Drovers 2024 State of the Beef Industry report, which includes an exclusive survey of cattle producers and their thoughts on numerous topics of importance to the future of their operations. To download the full report, click here .

America’s beef cattle inventory continues to tighten, pushing market prices to record levels. Under normal conditions, that would lead to anticipation about building herds again. If this were a typical cattle cycle, the elements for expansion — ample forage and record-high cattle prices — would be in place. However, the current cattle cycle is not typical other than the recent liquidation when drought forced significant culling and resulted in the smallest U.S. cattle herd inventory in 70 years.

The pace of expansion or herd rebuilding in the current cattle cycle will be much slower than past cycles, and the extent of herd building will also be reduced. That has been the case for previous beef inventory expansions since 1975’s peak of 132 million head as subsequent cycles have all peaked below the previous cyclical peak. For instance, the 1982 peak was 115 million head, 1996 at 104 million, 2007 at 97 million and 2019 at 95 million. What has changed?

Production-wise, efficiency has increased and the industry produces significantly more beef with fewer cattle, which impacts prices. When expansion begins, smaller increases in inventory pull prices lower. But there are other crucial factors that influence individual ranchers’ plans to continue in the cattle business.

Volatility Will Increase

The age of farmers and ranchers is critical as decisions are made going forward. Closely tied to age is the financial stress of the market over the previous four years. This plays a greater role for part-time cattle producers. The drought coupled with low prices and accelerating costs of production are key to the decision. I often hear ranchers comment: “Why would I or my spouse continue working in town to support cows that are draining our bank account?”

For many of those part-time cattle producers, the cows went to the sale yard. Will they be replaced? Only time will tell, but many will not return to the business. The other major consideration of this cycle is the price of replacement cows or heifers.

Ranchers are rightfully wary of a market that could become increasingly volatile. It’s a major risk to invest in cows or breed heifers with high maintenance costs that won’t deliver a marketable product for two-plus years.

The decision to own cattle or expand an existing herd will be influenced by high interest rates and rising production costs, further slowing the speed of any herd rebuilding.

Rebuilding The Cowherd Remains On Hold

One of the biggest factors on everyone’s mind revolves around if and when cow-calf producers might begin rebuilding the cowherd. Much of that decision to date has been contingent on the weather. However, despite improving forage availability and conditions (and higher prices), producers remain tepid about running more cows.

Drovers State of the Beef Industry 2024 Report

(Farm Journal)

The 2024 Drovers State of the Beef Industry survey asked, “What are your plans to restock your cowherd (as a result of the drought)?”

In both 2023 and 2024, 21% of respondents indicated “next year.” The process remains on hold. However, some of that reluctance might prove to be permanent. One key difference in this year’s survey has more producers indicating they have “no plans to restock” (23% versus 14% in 2024 and 2023, respectively).

There’s not much appetite to aggressively rebuild the cowherd. Producers are cautious when it comes to running more cows.

Drovers State of the Beef Industry 2024 Report

(Farm Journal)

Your Next Read: A Glimpse Into the Cattle Inventory Black Hole

Thriving Against The Odds: Cattle Producers Share Insights On The Here And Now

Thu, 28 Sep 2023 13:00:48 GMT

America’s beef producers are optimistic about the future, and the state of today’s beef industry is strong. Those are two highlights from Drovers State of the Industry producer survey conducted this spring.

Such producer sentiment was a little surprising due to the devastating and historic drought that gripped nearly all of cattle country last year. Yet, two-thirds of respondents call themselves optimistic about the future of the business, and 54% say they will add a family member to their operation within the next five years.

Those data points should be viewed as both the foundation of a strong industry and an indication of the resilience of Drovers readers. As part of our 150th anniversary celebration, Drovers sought to gauge producer attitudes, commitment and management practices.

Overwhelmingly, 88% of Drovers survey respondents say they support the industry’s sustainability efforts, and most respondents agree or strongly agree current industry challenges will continue to grow in the future. They include: reducing environmental impact, 78%; animal welfare scrutiny, 77%; and demand for higher quality carcasses, 73%.

While it is encouraging to see widespread acknowledgment of key issues that might have significant impact on the industry in the long term, possibly the most important revelation from the Drovers survey was producer commitment. It speaks volumes about cattle producers who, having experienced the second historic drought in a decade, remain committed to their business and their lifestyle.

Despite the myriad stresses caused by the extended drought, just one-tenth of our respondents considered exiting the business, while 66% of respondents said hanging up their spurs was never a consideration.

At Drovers, we share your passion for agriculture and the beef industry. Our 150th anniversary State of the Industry report is designed to provide a benchmark of information to help you make successful decisions.

The discussion below highlights several items because of their potential influence on the industry. They’re addressed in no particular order; each one is independently important. But perhaps more significantly, these items ultimately overlap to influence producer decision-making going forward.

Survey Results

It’s important to note at the outset, the survey results are largely representative of producers fully committed to the business. For example, roughly half of the respondents in the survey generate 75% or more of their income selling weaned calves. Moreover, 40% of respondents indicate cattle to be the primary/sole income source for the operation. At first blush, that might seem low and even contradictory with the previous statement; however, that number well exceeds the national average.

USDA’s National Animal Health Monitoring System Beef 2017 survey provides an extensive and comprehensive overview of management practices within the cow/calf sector. Most significant here, the survey categorizes income for respective operations (primary versus secondary). While bigger operations are more likely to designate cattle as a primary source of income, only 15.8% of all operations in the U.S. categorize it as such.

Additionally, the responses regarding preconditioning practices further underscore respondents’ commitment to the business. More than 80% indicated they precondition the calf crop prior to marketing. Based on a subjective view of the industry, that number far exceeds industry norms. In other words, survey respondents are actively seeking all opportunities to leverage both their genetic investment and management skills to maximize revenue for the operation.

Weather

No discussion about farming and ranching can occur without some mention of weather. During the past 10 years, cow/calf producers have endured two major rounds of drought and subsequent selloff of the cowherd. The outcome being the smallest beef cow inventory going into 2023 since the early 1960s.

What happens next? Just one-third of operations that downsized in recent years due to drought intend to restock this year. In other words, survey respondents are carefully evaluating their options and seemingly aren’t in any rush to restock anytime soon. Rebuilding the cowherd will take time, implying this cycle will likely be of longer duration versus the previous inventory lows in 2014. That assessment was confirmed by USDA’s July 1 cattle inventory report; producers are neither keeping back cows nor retaining additional heifers to grow the cowherd.

That’s not surprising. Producers need time to replenish pastures, ponds and hay inventories. To that end, the percentage of range and pasture rated as poor or very poor is on pace with the five-year average. That reality can be viewed both ways: it’s no worse versus previous years, but it’s no better either.

Profitability/Success

Survey results reveal a bullish outlook on the business. First, nearly two-thirds of respondents indicate they’re optimistic about the future. And second, despite market challenges in recent years (especially through COVID-19), less than 10% indicate their business operated at a loss during the previous five years. And given 2023’s market strength to date, it’s likely if the survey were taken today, such optimism likely would be even higher.

The combination of respondents’ optimism and profitability leads to a third aspect of significance: plans to expand the operation. In terms of growth, 54% indicate plans to add an additional person to the operation while 38% expect to expand their herd in the next five years. In other words, as alluded to above, growth and expansion are in the cards; it’s likely to be drawn out and take time.

Herd Expansion and Family Integration

Perhaps the most indicative question of long-term commitment and optimism about the business revolves around plans to add a family member. Regardless of profitability, roughly half of all respondents indicate they plan to add an additional family member in the next five years.

Complexity

Ultimately, the beef industry’s success will be underpinned by how well it navigates the respective priorities of consumers and the inevitable shifts in the marketplace over time. The survey asked about four different aspects related to consumer pressure and expectations for change in the future: environmental impact, animal welfare, sustainable practices and desire of high-quality beef, respectively. In every instance, a majority of producers either agreed or strongly agreed each of those items will be increasingly important in the years to come.

The survey report summarizes it succinctly: “Operators foresee acceleration of challenges they face today, mostly related to consumer attitudes and activist efforts that are largely outside their control. Most beef producers expect increased pressure to be sustainable, care for the environment and elevate animal welfare while producing higher quality carcasses.”

That’s especially true as millennials (many of whom consider themselves to be Flexitarians) obtain wealth and increasingly become the most influential consumer cohort for the beef industry, and the importance of being responsive to their concerns is best illustrated by 2023’s Power of Meat study.

The marketplace will become more complex in the years to come. Accordingly, in response to those pressures, producers will need to be increasingly cognizant of the importance of eating quality coupled with planet health and animal welfare.

Conclusion

Going back to the beginning, as noted previously, survey respondents are actively seeking opportunities to leverage their skills and capabilities to maximize revenue for their operations. Furthermore, they also envision even more complexity coming to the marketplace. And given their current state of mind regarding the business (growth and optimism), it’s fair to say Drovers’ respondents are highly likely to eagerly anticipate that complexity as yet another venue of opportunity.